Capital One “Promotional Rate” Extended

Mr. Saver and I have just returned from our vacation, and while we had a great time with our family and friends, we were very happy to be back home in familiar surroundings (and with our two kitties).

I came home to a stack of mail. Wedged between the bills and the junk mail was an “important notice” about my Capital One credit card account. You might remember that in March 2009, I was notified that my 10.9% interest rate (the higher of my two cards) would be replaced in January 2010 with a “new purchase rate,” with the current rate becoming a “promotional” rate. But the February Capital One statement came and went, and I had yet to see this increase.

Well, this notice says Capital One has “decided to extend your promotional rate period for a second time” until January 31, 2011. Then, my APR would bump up to 17.9%.

Again, I have almost nothing on my Capital One credit card, but I’m pretty amused that they’ve extended my “promotional rate” because my business is important to them. As usual, I wonder how these credit card companies get away with these tricks — because to me, that’s what they are. Tricks.

4 comments to Capital One “Promotional Rate” Extended

I recently (January 2011 statement), got a notice from Capital One that they were raising my VISA interest rate from 11.9% to 17.9% due to the expiration of a “promotional” rate. I have had the card for 8 years and there was NO promotional rate in effect. I have never been late with payment. I called them and was told they sent me notice of the change in MAY 2009 – over 20 months ago. I never received that notice – and I keep EVERYTHING they send me. I asked them to send me a copy of the letter and they said they could not. Then, on a second phone call, they said they COULD send me a copy of the letter, but it would take 3-4 weeks (this was on 2/28/2011). Then just yesterday (3/4/2011) I received a so-called “copy” of the original letter, which was obviously just made recently. To prove this rate hike is bogus, the letter just received states: “Beginning January 2011, your rate for balances subject to the Purchase and Balance Transfer rate will be 17.9%. This will be a variable rate, determined by adding 14.65% to the Prime rate.” So – if it is tied to the prime rate, how would they know 20 months in advance what that rate would be? They cite the “challenging economic environment” as one reason for the change. This stinks to high heaven, and in searching around the web I see they are doing this to a LOT of people. I feel the rate is usurious, the practice deceptive if not an outright lie, and
Capital One is just contributing even more to the “challenging economic environment” with actions like this. They are obviously trying to make up for the new laws meant to prevent credit card companies from gouging consumers. I have submitted a complaint to the US Senate Banking Committee and hope they will take my complaint under consideration, and add it to the number of similar complaints about this particular incident that it is clear (from my web research) they are receiving.

I’ve always hated Capital One, I blame them for my credit card debt that started in college. They sucked me in. That is a very high interest rate, good for you for not having a balance with them! Ugh, hubby had problems with them, we paid that card off and never looked back. Welcome back from your trip! Enjoy Fourth of July weekend!

I had my own experience with them – they claimed a $300+ payment of mine was never received, while my bank claimed it was. It took many months of back and forth, with multiple levels of proof, before they realized(admitted?) that they did in fact receive my payment in the first place. I had to get phantom interest charges/fees removed too.

I don’t carry balances (on purpose, anyway), so whatever they do with rates on my card – well, they can have fun. No interest income coming from me:)

Other than that experience, I have to say, I haven’t had problems with them. I won’t be canceling the card.

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